Stocks, Oil, and Bitcoin Slip as Investors Weigh Russia and the Fed—and What Else Is Happening in the Stock Market Today
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Tensions remain high over the situation of Russian troops at the Ukraine border.
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Stocks were falling Thursday, as the threat of a Russian invasion of Ukraine returned to the fore, wiping away optimism left over from Wednesday when investors cheered signals from the Federal Reserve on monetary policy.
Futures for the Dow Jones Industrial Average indicated an open 200 points or 0.6% lower, after the index slipped 54 points Wednesday. S&P 500 futures signaled a start 0.6% into the red, with the Nasdaq on track to drop 0.7%.
Overseas, London’s FTSE 100 fell 0.7% and Tokyo’s Nikkei 225 ended the day with a loss of 0.8%. In addition to geopolitical tensions, traders in Japan were faced with data showing exports grew less than expected in January and that the country had recorded its largest monthly trade deficit in eight years.
Worries over a war in Eastern Europe remain front of mind, with mixed messages over Russian troop movements on the Ukraine border injecting volatility into the market.
Stocks sold off through the end of last week and on Monday amid warnings from Western officials that war in Ukraine was imminent. The situation cooled on Tuesday as the Russian ministry of defense said it was pulling troops off the border. In turn, that was contradicted by statements on Wednesday from the secretary-general of the North Atlantic Treaty Organization and U.S. Secretary of State Anthony Blinken that the Russian military presence in the region appeared increasingly intense.
“Markets are increasingly becoming susceptible to headline risk,” said Michael Hewson, an analyst at broker CMC Markets . “This means the phony war is likely to continue until such time as Russia either de-escalates or decides to push into Ukraine.”
Oil prices were falling but remain at relatively elevated levels. Futures for U.S. benchmark West Texas Intermediate crude were down almost 2.5% to $91.50, having traded above $94 during much of Wednesday.
Bitcoin and other cryptocurrencies were also lower. The leading digital asset was down almost 2% over the past 24 hours to just above $43,000, according to data from CoinDesk.
Write to Jack Denton at [email protected]
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